Which compounded annually at one deposit paid

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To save for $2,500 in five years to purchase a new Apple laptop computer, one must save different amounts, depending on the frequency of the payments. Assuming one was contributing to a Tax-Free Savings Account (TFSA) that is paying a 2.75 percent rate of return, what would be required payments based on the following scenarios.

Problem 1: One deposit (lump sum) paid at the beginning of the five-year period, which compounded annually at 2.75 percent?

Option 1: $2,182.88

Option 2: $2,427.18

Option 3: $2,209.64

Option 4: $2,360.45

Option 5: None of the Above

Reference no: EM132861523

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